Critical management issues in China’s socio-economic transformation

Abstract

Purpose This paper aims to introduce ten studies included in this themed issue that illustrate from multifaceted angles some critical management issues and context-specific challenges on strategy and innovation facing the State and enterprises during China’s socio-economic transition. Instead of focusing on topics from the literature, this special issue (SI) pays more attention to characterising unique Chinese business practices in the transformation period. Design/methodology/approach The ten manuscripts were selected for this SI so that readers can compare how scholars used different research designs and multiple analytical and statistical approaches to draw conclusions. Findings These studies involve a wide range of aspects, as well as diversified perspectives demonstrating some critical management issues and context-specific phenomenon associated with the development of strategy and innovation in contemporary China. The results show that while pollution-related issues have had a damaging effect on China’s business environment, the Chinese government has to enact and enforce stricter environmental laws to promote technology innovation in a healthier manner; moreover, Chinese firms should pay greater attention to the trade-off between the increasing of resource consumption for growth and the reducing of energy use for the sake of the planet. In response to the grand innovation challenges Chinese manufacturing is confronted with, these papers suggest that policy support may not always be beneficial but sometimes detrimental to independent innovation, and that Chinese manufacturers may ultimately get access to the key and core technology of forerunners by forming a R&D strategic alliance in periphery knowledge/technology first. Overall, the outcomes of these studies provide a bigger picture and intriguing implications that may inspire practitioners, policymakers and academics to further ponder relevant issues in a more comprehensive way. Originality/value All ten studies based on original data were not reported elsewhere and demonstrated results that have not been addressed in prior research. This paper enriches one’s understanding of how Chinese firms have been deliberately seeking their own distinctive trajectories of developing strategy and innovation dissimilar to those of advanced economy companies, given the peculiar cultural background and institutional systems. Future research trends and opportunities are also outlined.